It has been a generally accepted fact the Filipinos loath risk, meaning we tend to dodge risks especially in investing and how we view entrepreneurship. One evidence of which is our huge money in Savings accounts.
“BSP numbers pegs bank accounts (Savings, Checking & Time Deposits) at about P5 trillion while Special Deposit Accounts (SDA) at approximately P1.5 trillion.”
- MoneySense Philippines -A big lump of the money of the Pinoys is not actually being put in investment vehicles and is not reaching their full potential. While bank accounts are really safe, their earnings are waaaaay below price increases rates on commodities (inflation) which means for every year we keep money in savings, we actually tend to lose them.
My recommendation: Learn about investing. There are a lot of seminars and blogs around investing, insurance, entrepreneurship, personal finance, so take the time to learn the correct way to manage your hard earned money. Financial education it is one of those things that will bring us financial independence.
Let us also not be immobilized by anxiety and doubt because if we risk nothing we gain nothing. I don’t mean gambling or betting our hard earned money away – we can learn to broaden your horizons and practice practical investment design.
It's simple. Just separate a portion of your savings to investments. This money should be something you are willing to put away for a very long time probably in 10 years before you reap the gains.
If investing directly in the stock market may be too much for you to stand, then I recommend we take a look at collective “equity funds” like the your local bank’s UITFs (Metrobank, BPI, or Security Bank) or mutual funds from FAMI as well. Even top life insurance companies now have investment components like SunLife and AXA.
Regardless of investing directly or indirectly, I have faith that it’s time for Filipinos to hit the books and put in in the Philippine stock market.